IKEA Proves E-Money Is Ready for World in Major Transaction

The furniture and home-goods giant IKEA made a major transaction last week using the Ethereum blockchain to settle an order with another local retailer.

Date: 
October 13, 2019
Read time: 
2 minutes

IKEA Proves E-Money Is Ready for World in Major Transaction

Author: Dylan B
Date: 
October 13, 2019
Read time: 
2 minutes

The furniture and home-goods giant IKEA made a major transaction last week using the Ethereum blockchain to settle an order with another local retailer.

The furniture and home-goods giant IKEA made a major transaction last week using the Ethereum blockchain to settle an order with another local retailer.

A programmable financial supply chain, where trading partners can connect information flows to money flows through smart contracts, will transform how suppliers and customers interact. (Stefán Árnason, the CFO of IKEA Iceland)

Nordic Store, the business that requested the order from the IKEA in Iceland, settled the transaction through Tradeshift and Monerium, which are a supply chain management firm and a programmable digital cash, ConsenSys-backed product, respectively. While the Ethereum blockchain was used to record the transaction, the pair decided on using Monerium rather than other crypto products. 

What makes this transaction unique is that Monerium is Iceland’s first regulated and approved digital money offering, which acts as a tokenized form of their national currency Krona. Considering that this is the world’s first successful transaction using digital money and blockchain, both Tradeshift and Monerium are excited about the potential future for e-money as a whole. 

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While various forms of e-money have been around in the past, the development of crypto has allowed companies to become smarter about how they create assets that can be used in various economies. Now that the world has viable options, places like Iceland have developed their own e-money offerings that can meet government regulations, such as those put forth by the European Electronic Money Institution. 

This transaction could open up many possibilities for other retailers in Iceland and help e-money products spread as both blockchain and crypto continue to grow. As Stefán Árnason, the CFO of IKEA Iceland put it: 

“A programmable financial supply chain, where trading partners can connect information flows to money flows through smart contracts, will transform how suppliers and customers interact.”

Posted by Dylan B

Dylan Buckley is a writer based in California. He became interested in cryptocurrency upon discovering it in 2014 and soon started investing as well as writing for a wide variety of clients and crypto-startups in the space. When he is not producing content for individuals and businesses, he is typically working on his own self-development content or making music.

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